CFAP Assistance CFAP provides direct assistance to agricultural - PowerPoint PPT Presentation

CFAP Assistance CFAP provides direct assistance to agricultural producers impacted by the effects of the COVID-19 outbreak. CFAP 4

CFAP Funding Two Funding Sources: • CARES Act provides • $ 9.5 Billion • CCC Charter Act provides • $ 6.5 billion CFAP 5

Sign-up Period Sign-up period for CFAP May 26, 2020 – August 28, 2020 CFAP 6

Sign-up Period Information available at: www.farmers.gov/CFAP or CFAP Call Center 877-508-8364 CFAP 7

Eligible Producers Eligible Producers To be eligible for a CFAP payment, a producer must have had a share in the eligible commodity on January 15, 2020; and/or April 16 th through May 14 th , 2020. In addition the producer must be a: • Citizen or National of the United States • Resident alien (possessing a Resident Alien Card (I-551) • Partnership of citizens or nationals of the United States • Corporation, Limited Liability Company, or other organizational structure organized under State law • Foreign Person or Foreign Entity who meets Foreign Person Rules according to 5-PL CFAP 10

Payment Limitation Payment Limitation Payment Factor The initial CFAP payment will be factored at 80% of the calculated payment and will be applied after applying payment limitation. The maximum amount a person or legal entity may receive is $200,000. For Corporations, LLC’s and LP’s qualifying for the optional increase in limitation may receive a maximum of $400,000 or $600,000 respectively. Subsequent payments maybe issued at a later date as determined by Secretary. Payments are not subject to sequestration. CFAP 23

Payment Limitation Payment Attribution • CFAP payments to persons and legal entities will be limited according to the rules for attribution at 7-CFR §1400.105. • CFAP payments made directly or indirectly to a person or legal entity will be combined and limited to the per person or legal entity. • CFAP payments to a legal entity will be tracked through 4 levels of ownership and will be reduced for members, partners or stockholders holding an ownership interest below the 4 th level. CFAP 24

General Information

Who is Eligible? Producers: • with ownership risk of identified commodities that suffered a 5% or greater national price loss as a result of the COVID-19 Pandemic or had substantial marketing costs of inventories • Who produce or own one of the following commodities: • Milk • Non-Specialty Crops • Wool • Livestock • Specialty Crops CFAP 26

New Term: Subject to Price Risk Any production, sales, and/or inventory that is not subject to an agreed-upon price in the future through: • Forward contract • Agreement • Similar binding document CFAP 27

AD-3114 CFAP Application • One application per producer • Producer Certification • Documentation is only required upon spot check or when requested by COC. Retain records for 3 years. • Completed AD-3114 can be submitted to any USDA Service Center CFAP 28

Dairy (Production)

Eligible Dairy Operation Dairy operations who produce milk for the following months are eligible for CFAP: • January 2020 • February 2020 • March 2020 Note: Dairy operations that dissolve during the months of January, February, and March 2020 are eligible for pounds of milk production during any month they produced milk. CFAP 30

Eligible Milk Production CFAP Eligible Milk Production is: § Milk produced for the months of January, February, and March of 2020 § Any dumped milk during the months of January, February, and March § Dairy production covered under the Dairy Margin Coverage (DMC) program, Dairy Revenue Protection (Dairy RP), and other dairy revenue insurance maintains eligibility for CFAP. CFAP 31

Information Used for Certification Producers will use the following information to self- certify January, February and March 2020 milk production: • Milk marketing statements for the months of January, February, and March • Records of dumped milk not listed on the marketing statements for the months of January, February and March ***REMINDER - Documents are not required to be provided at signup because the application is self-certification. Must retain records for 3 years. *** CFAP 32

Joint Venture Dairy Operation • Members of dairy operations operating as a joint venture without a tax identification number (TIN) will separately apply for CFAP. • Producers will apply using their applicable pounds of monthly milk production per producer depending on their share of the dairy operation. CFAP 33

CFAP Dairy Payment Calculation CFAP payments for eligible milk production will be the sum of results of the following two calculations: • Part 1 (CARES Act) – January, February, and March 2020 milk production total in pounds multiplied by $0.0471 • Part 2 (CCC) – January, February, and March 2020 milk production total in pounds multiplied by 1.014, and by $0.0147 CFAP 34

Non-Specialty Crops & Wool

What are the Eligible Commodities?

Eligible Commodities • Malting Barley • Canola • Corn • Upland Cotton • Millet • Oats • Sorghum CFAP 37

Eligible Commodities (continued) • Soybeans • Sunflowers • Durum Wheat • Hard Red Spring Wheat • Wool Note: Crops intended for grazing are ineligible for CFAP CFAP 38

How were Eligible Commodities Determined?

Determining Commodities 5% decline in futures prices between weeks of: • January 13-17, 2020, and • April 6-9, 2020 CFAP 40

What does the Producer Have to Furnish?

Producer Input (continued) • Producer’s share of 2019 Total Production • Producer’s share of 2019 Production Not Sold as of January 15, 2020 – must be subject to Price Risk • Unpriced inventory (or production subject to price risk) means any production that is not subject to an agreed-upon price in the future through a forward contract, agreement, or similar binding document. • Production appraised from failed acres is ineligible for CFAP. CFAP 42

Non-Specialty Crops & Wool Payments

Payment Rates Commodity Unit of CARES Act CCC Measure Payment Rate Payment Rate Malting Barley BU $0.34 $0.37 Canola LB $0.01 $0.01 Corn BU $0.32 $0.35 Upland Cotton LB $0.09 $0.10 Millet BU $0.31 $0.34 Oats BU $0.15 $0.17 CFAP 44

Payment Rates (Continued) Commodity Unit of CARES Act CCC Measure Payment Rate Payment Rate Sorghum BU $0.30 $0.32 Soybeans BU $0.45 $0.50 Sunflowers LB $0.02 $0.02 Durum Wheat BU $0.19 $0.20 HRS Wheat BU $0.18 $0.20 Wool (graded, clean basis) LB $0.71 $0.78 Wool (non-graded, greasy LB $0.36 $0.39 basis) CFAP 45

Payment Formula CARES Act Payment Formula: “2019 Total Production Not Sold (as of January 15, 2020)” (not to exceed 50% of “2019 Total Production”) 50% of above number multiplied by CARES Act rate. CFAP 46

Payment Formula CCC Charter Act Payment Formula: “2019 Total Production Not Sold (as of January 15, 2020)” (not to exceed 50% of “2019 Total Production”) 50% of above number multiplied by CCC rate. CFAP 47

Payment Formula Total Payment Sum of CARES Act and CCC Charter Act payment CFAP 48

Payment Example AD-3114 – Part D 13. 14. 15. 16. Commodity Unit of Measure 2019 Total 2019 Production Production Not Sold (as of Jan 15, 2020) Soybeans Bushel 6500.00 1500.00 CFAP 49

Payment Example (continued) Element Instruction Data 2019 Production Not Sold Taken from Item 16 – AD- 1,500.00 bushels (as of Jan 15, 2020) 3114 2019 Total Production Taken from Item 15 – AD- 3,250.00 bushels multiplied by 50% 3114 Eligible Production Smaller of 1,500.00 or 1,500.00 bushels 3,250.00 CARE Act Payment (50% multiplied by 1,500.00) $337.50 multiplied by CARE Act Payment Rate (750.00 multiplied by $0.45) CCC Funds Payment (50% multiplied by 1,500.00) $375.00 multiplied by CCC Payment Rate (750.00 multiplied by $0.50) Gross CFAP Payment for $712.50 Non-specialty/Wool CFAP 50

Livestock

Eligible Producer [7 CFR 9.3] defines an eligible producer as a person or legal entity who shares in the risk of producing a crop or livestock and who is entitled to a share in the crop or livestock available for marketing or would have shared had the crop or livestock been produced and marketed. CFAP 52

Eligible Producer [7 CFR 9.3] A contract grower who does not own the livestock, will be considered a producer if the contract allows the grower to have risk in the livestock. Livestock owners and contract growers who are at risk and have a share of the livestock available for marketing or would have a share had the livestock been marketed are eligible livestock producers. CFAP 53

CFAP Eligibility for Livestock • Livestock that realized a 5-percent-or- greater national market price decline between the average for the week of January 13-17, 2020 relative to the average for the week of April 6-10, 2020, have been determined eligible for CFAP. • National payment rates have been determined based on those price declines. CFAP 54